On July 27, 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump reached a landmark political agreement on transatlantic trade. Once the agreement enters into force, it will introduce a flat tariff cap of 15% on almost all EU exports to the US, replacing the previously fragmented and often punitive tariff structures. This cap includes the US most-favored-nation (MFN) tariff and eliminates additional tariffs that were previously imposed on top of it. Key sectors such as automotive, pharmaceuticals, semiconductors, aircraft parts, and certain chemicals will benefit from immediate tariff relief, with some strategic products reverting to zero or near-zero tariffs.
Key benefits for German companies
Germany's export-oriented economy, particularly the automotive and industrial sectors, will benefit from this agreement through:
- Tariff reductions: Automotive exports, which were previously subject to tariffs of up to 27.5%, are now subject to a maximum rate of 15%, resulting in significant cost savings and improved competitiveness.
- Strategic exemptions: Products such as aircraft components, generic drugs, and selected chemicals enjoy preferential treatment, removing barriers for high-tech and pharmaceutical companies.
- Supply chain stability: The agreement protects integrated value chains between the EU and the US, many of which rely on German SMEs, and supports long-term investment planning.
Despite the progress made, some challenges remain:
- Tariff burden: Although the 15% cap is lower than previous rates, it still represents a significant cost for exporters. However, the framework continues to provide for a 50% tariff on steel and aluminum products.
- Non-tariff barriers: Regulatory differences, particularly in automotive standards and sanitary/phytosanitary measures, continue to hinder market access.
- Ongoing negotiations: The agreement is not legally binding and represents the beginning of a broader process. Future negotiations will shape additional sectors and tariff structures.
Why professional support is essential
Navigating the changing trade landscape between the EU and the US requires expertise and flexibility. Companies need to:
- Stay up to date on tariff changes, exemptions, and sector-specific regulations
- Adapt their export strategies to new compliance requirements and market opportunities
- Mitigate risks and leverage opportunities through practical advice and customs planning.
At WTS, we specialize in global trade and environmental tax consulting and offer tailored support to German companies expanding internationally. Our team monitors regulatory developments, provides strategic insights, and ensures full compliance so that you can succeed in transatlantic trade.
The trade agreement between the EU and the US offers German exporters new opportunities and planning security, but also requires strategic navigation through complex customs and regulatory frameworks. With professional advice, companies can turn these changes into a competitive advantage and secure sustainable success in the US market.
Contact our expert Dennis Salomon for a no-obligation consultation or find out more about the impact of US tax and customs policy on German companies here.
